Government Review Reveals 600,000 Households Owed Up to £12,000

An extensive review by the Department for Work and Pensions (DWP) has revealed that approximately 633,338 households receiving Personal Independence Payments (PIP) may be owed significant back payments due to previous errors in processing claims. The DWP has spent years examining these cases, identifying underpayments that could total up to £12,000 for affected claimants.

The review, prompted by a landmark Supreme Court ruling in July 2019, highlighted flaws in how the DWP defined “social support” within PIP assessments. As a result, many claimants may not have received the full benefits to which they were entitled. The DWP has already processed 308,665 records up to March 2023 and has disbursed around £250 million to those who were underpaid. However, there are still 324,673 cases awaiting review.

Background of the Review and Its Impact

The DWP initiated this review in 2021, focusing on claims made since April 6, 2016. By March 2022, the DWP had assessed 219,080 cases, and in the following year, it progressed a further 89,585 claims. For individuals found to have been underpaid, the average amount received has been approximately £5,285. Some claimants have reported receiving back payments exceeding £12,000, leaving them astonished at the financial support they missed.

PIP is designed to assist individuals with long-term illnesses, disabilities, or mental health conditions. Claimants can receive up to £187.45 per week, depending on the severity of their condition and their need for support in daily living or mobility.

Eligibility and Changes Following the MM Judgment

The PIP system consists of two components: one for daily living assistance and another for mobility support. Eligibility for these elements is determined based on how significantly a condition impacts daily activities. The Supreme Court’s ruling allowed for additional points to be awarded for social aspects of daily living, which means some claimants may have been wrongfully denied the daily living part of PIP or awarded a lower rate than they qualified for.

The DWP has also identified new errors related to PIP payments. One issue involved claimants lacking a National Insurance number, which led to complications in processing applications, despite such a number not being a requirement for claims. The DWP has paid out £500,000 to resolve this issue, alongside £13 million to Scottish claimants who faced entitlement losses during transitions to the Adult Disability Payment (ADP).

Individuals who believe they may be affected by these developments or the MM judgment should consider appealing their PIP decisions. The first step in this process is to request a “mandatory reconsideration notice” from the DWP, which allows for a review of the original decision. If claimants remain dissatisfied, they can escalate their appeal to an independent tribunal.

For those seeking to claim PIP or inquire about their eligibility, the DWP can be reached at 0800 917 2222. With ongoing efforts to rectify past errors, the DWP aims to ensure that all eligible claimants receive the support they are entitled to.